Touchstar Share Discussion Threads

[hastings] 23/5/2023 13:00

I'm not convinced that Chelverton is ready to wind the fund up imminently or in a few months. Rather, I view their stance as being at the exploration stage with an intention of delivering an outcome on how best to achieve that by the end of the year. I agree with the view that it could find another micro cap focused fund to take its holding, there are a few about!Unfortunately, it's proving a distraction given the strong progress and performance from TST.Hopefully some clarity in a week or two on a few things along with potentially an update on trading!

[cocker] 23/5/2023 12:31

Why the concern on Chelverton, as this stock is a great performer for them and like me they have waited a long time for it to come to fruition. Surely now is not the time to sell

[varies] 23/5/2023 11:40

The simplest solution for Chelverton would be to find an outside party to buy its holding, e.g. an investment trust specialising in small companies.
A return by TST to the payment of dividends might make its shares more attractive to such a purchaser.

[smithie6] 22/5/2023 19:48

a cumpulsory buy back is also an option, pro rata

[smithie6] 22/5/2023 19:43

....if there were to be a pro rata open offer for a buy back

then big shareholders such as Chelverton can try to take up a part of any buy back that is not taken up. That would comply with the rules/regs.

----

if there were to be a buy back offer then many PIs would imo not take part
& those small amounts all add up & could be parttly taken up by Chelverton ('if' they want to reduce their position).

[cocker] 22/5/2023 18:59

I can not see how TST can offer Chelverton or anyone else a deal with their shares without giving an open offer to everyone. That can not happen without an egm or I suspect worse case scenario, its breaking AIM regulations and the law.

[varies] 22/5/2023 18:46

The delay in reaching a decision is surprising.
I wonder if some deal has been under discussion that would enable to Chelverton to sell its holding and the terms are proving hard to agree.

[cockerhoop] 22/5/2023 15:46

Yes, and contrary to the recent calls post finals when they guided to an Agm announcement.

[cocker] 22/5/2023 14:59

To be honest, not very often do I criticize the company, but given they have had months to decide on a divi & buy back once the courts had passed the relevant necessaries, a poor show to say an update in the next few weeks.

[varies] 22/5/2023 11:57

if there is to be a dividend or a return of cash in one form or another, then surely this will be announced at the AGM shortly

[cocker] 22/5/2023 11:48

Agm says announcement will be made shortly after the agm, today /tomorrow i guess. Liquidity will be very good short term unless someone unloads a shed full. Long term more of a problem. However, if say the company can buy 500k at 1.20, thats better for long term holders for sure, i guess we will have to see who wants out near term

[rivaldo] 22/5/2023 11:19

Firstly, thanks to Hastings for the excellent write-up - great to see TST attracting some attention now. Here's a direct link:



I hope there is a trading update with the AGM, but history suggests the chances are around 50/50 - sometimes there is, sometimes there isn't. Whichever, it won't be long until a full H1 update.

There was a small buyer today at 101.7p, well within the spread, and given current prospects it's likely sellers can trade at a premium to the bid, so the "true" spread is probably much smaller than the published spread. And almost any decent buying at all would probably move the price up anyway.

I suspect a divi, special or otherwise, is more desirable and likely than buybacks. The buyback AGM clause may just be to cover events if an opportunity presents itself from a sudden share price fall or if the likes of Chelverton make the company aware they wish to dispose of a slug.

[garbetklb] 22/5/2023 11:14

I hope it's 105% OF, not ABOVE, mid price......! As outlined, that would allow them to buy a block privately - surely buying in the market would be v difficult given liquidity?

[cocker] 22/5/2023 10:02

Well on the agm schedule it clearly states that a maximum of 847,507 @ no more than 105% above mid price up to June 2024. This clearly looks as if shares will be purchased via market & that the board expects that in doing so sellers will be tempted as price rises. So if all resolutions are passed one should expect a significant share price rise unless one or more seller wants out quickly, which of course they might given the share price is at a year high almost.

[hastings] 22/5/2023 08:57

Good points there. I'd not be particularly pleased if there is a seller and the intention of the buy back is merely to take it out.My interpretation is that they'd be buying on the market, albeit in limited size I guess. There has been a mention of Chelverton winding up its growth fund, but things like that take time execute, whilst additionally an added complication is Ian Martin still being a non exec there? Or perhaps I have that wrong.Given the large slug of cash relative to market cap TST has an opportunity to do something beneficial for shareholders, with a few options on the table. I personally don't see buy-backs, particularly to take out a fund as the way to achieve that.

[garbetklb] 22/5/2023 08:46

Agreed Hastings. With the vicious circle of high spread leading to low liquidity leading to high spread, buying back shares ain't going to help. Unless they have a seller in mind......?
Modest dividend with progressive dividend policy would be better - although shrewd reinvestment in the business might be best of all? For an £8m company, paying a dividend isn't going to suddenly open up a wider pool of investors.

[hastings] 22/5/2023 07:45

Can't really see the logic in buying the shares back. I'd have thought dividends would be more meaningful.

[hastings] 22/5/2023 07:36

Cheers Monet. Agree re-spread which I mentioned, but as I also pointed out, it is possible to get inside that. I accept its very off putting, but if the positive trend continues or gathers pace then the shares can quickly jump and markedly.

[cocker] 22/5/2023 07:32

Hopefully either later today or possibly tomorrow, an update will appear as of agm statement. In the agm statement it intends to purchase a maximum of 10% of the companies shares, around 850k. I like it as long as share options and bonuses aren't handed out like confetti, which im pretty sure they won't be. The downside is if one can barely buy or sell now, what chance after!.

[monet] 21/5/2023 22:02

Good write up, but the spread is 15p(16.667%)

[hastings] 19/5/2023 14:50

Write up for interest. Nothing new for those already familiar, but may be for any newcomers.I'm hoping to arrange a catch up call with Ian Martin.https://martinflitton1.wixsite.com/privatepunter/post/touchstar-is-aiming-high-19-05-23

[cocker] 19/5/2023 14:02

Agm Monday and albeit not last year but in all previous years there has been a TU with the agm statement. It appears all is going very well, but would the company want to inflate the share price with good news if a buy back is about to begin.

[cocker] 17/5/2023 08:39

Winning contracts on a regular basis, order book was 2 mill at results, cash 46p a share, expansion into europe, what's really not to like about TST. I supect the agm will provide a TU that will cement all the above, coupled with that I will go for a 2.5p divi and a share buy back of upto a million pounds.

[smithie6] 16/5/2023 21:16

..btw
..although some recent contracts might not be significant/big enough to justify an RNS, I'm a fan of the shares....& bit by bit it is all going in the right direction, eg. the overall order book is notably up in the last X months, by a material %....& winning some contracts overseas.

[cocker] 16/5/2023 09:24

This is where TST sets itself from the so called UNICORN stocks. It doesn't annouce every contract with the usual "this market is worth X amount of millions". Instead its a well run cash rich business that will eventually reward us all in the short/medium term